I'd really like to back up and build upon the comments posted by Disillusioned from Parma Heights, Ohio on September 7, 2007. His/Her comments couldn't be more accurate.
As you can tell by my user name, I am truly astounded at how many folks continue to be sucked in by NAA's recruit marketing. First and foremost it is important to understand that NAA's President and CEO, Andy Albright, has a background in MLM (Multi Level Marketing for those of you unfamiliar with the acronym.) There are a myriad of reasons that MLM has the reputation it does, simply perform a search for Andy Albright on the web utilizing any of the more popular search engines and see for yourself just how many MLM activities he is or has been involved in.
So why does the history of NAA's President concern you? Well, simply put, NAA is an Independent Marketing Organization engaged in the business of selling leads. That's right, selling LEADS, not insurance, LEADS. The leads are just as Disillusioned stated, elderly and uninsurable. But why is that important you ask? It is important to remember that you are at a 55% contract rate to start out and that only 80% of that is advanced when the application is issued. The average sale for an NAA lead is around $360 (Agent's commission = $158.40) in annual premium, which means in order to reach their claims of $8,000 or $10,000 a week in annual premium you must meet with and close, the keyword here is close, just over 22 proposed insureds per week. Even NAA's best agents can't say they have closed 100% of their appointments in a given month or week for that matter. Here's where the rubber meets the road. In order to visit with 22 proposed insureds a week you'll need to have a lead flow of about 73 leads per week. Keep in mind that 22 per week is an average of 4.5 per day with about 1/2 hour drive between appointments in the same county, and one hour of time with each proposed insured "if" you take an application. If you work a normal work week that equates to just shy of 7 hours a day. Not too shabby... Very possible you say? That's 73 x $20 for what NAA has marketed as an "A" lead. "A" lead doesn't mean good quality, it just means current, as in the lead was very recently received from the proposed insured. Did you do the math while reading the last sentence? That's right it will cost you $1460 to be able to sit down with an average of 22 proposed insureds per week. Wait, what about the other 51 leads? What's wrong with them? Those are the ones that Disillusioned told you about, the ones that are too old, uninsurable, or can't afford any number you put in front of them, but you still paid $20 a piece for them. Do you see where we're headed here ladies and gentlemen? Your effective lead cost for 22 leads per week is $1460 or broken down, $66 a lead. So let's say you are the best agent NAA has ever had, you close 100% of your appointments every week for a month...
$1460 x 4 weeks = $5840 in lead cost, while your commissions on 22 closed appointments per week at $158.40 each x 4 weeks = $13,939.20 - $5840 lead cost = $8099.20 net profit before taxes, professional insurance, expenses(telephone, vehicle, fuel, etc.) After you take out your expenses it isn't much return on investment.
Now here is the best part. The above, run-on paragraph, is a "perfect" example, the way NAA and its President and CEO, Andy Albright, would like you to believe is the way it works. The reality of the matter is that it is nearly impossible for a new agent with NAA to get more than 10 "A" leads per week. As a former agent contracted through them I serviced the most populous county in my state. A reasonable person would think that with new mortgage closings exceeding 1500 per week in the county it would be fair to expect 75 leads per week, right? Not even close, you'd be lucky to see that many leads in two months. What they don't tell you up front is that your MGA (Managing General Agent) or upline (does MLM come to mind?) must request a certain amount of leads for a certain geographical area. If they are working out of the same county they can easily pick the leads they want to distribute to you and then keep the higher quality leads (i.e. younger, larger mortgage) for themselves. Heck, they can even double distribute the leads like NAA does with its "B" lead program (another story altogether). I can tell you exactly how many of their "B" leads I called on that had already been sold, the number is rather astounding! Haha!
The bottom line is this ladies and gentlemen... there are better programs out there, programs that truly give you exclusive leads, exclusive territories, and above all a 90% - 110% contract rate from the start! Do some research and you will find them. It may take a while, but in the end will be well worth it!
Rocky River, Ohio